DAVID D. NOCE, Magistrate Judge.
This action is before the court on the unresponded to motion of plaintiffs to determine the validity of an attorney's lien placed on plaintiffs by their former legal counsel. (Doc. 53.)
Plaintiffs Randy D. French and Cindy Lou French, citizens of Colorado, were injured in a motor vehicle accident with defendant James E. Haggard, a citizen of Nebraska, on December 27, 2007, in Warren County, Missouri. On May 4, 2009, plaintiffs filed the first of two lawsuits in this court under 28 U.S.C. § 1332. (
In their motion before the court, plaintiffs allege the following regarding Mr. Fischer's representation of them. On June 5, 2009, Mr. Fischer sent plaintiffs an e-mail regarding interrogatories and a document request. (Doc. 53-7.) Mr. Fischer also confirmed a meeting with plaintiffs to discuss the interrogatories and document request on June 18, 2009 at 1:30 p.m. (
On June 16, 2009 at 10:34 a.m., attorney Fischer, plaintiffs' sole counsel, sent plaintiffs a two-sentence email, which stated, "I understand that you are unhappy with my representation of you. Please find a replacement attorney at your earliest convenience and advise me of his/her name." (Doc. 53-8.) Mr. Fischer sent another email to plaintiffs a few hours later at 1:49 p.m., stating,
(Doc. 53-9.) According to plaintiffs, they did not know what "dissatisfaction" attorney Fischer referred to, and neither they nor Mr. Fischer had brought up any concerns regarding his representation of them before these emails. (Docs. 53-8, 53-9.)
On June 17, 2009, attorney Fischer filed a motion captioned, "Unopposed Motion To Vacate Rule 16 Conference and Extend Time To Answer Interrogatories." The motion stated that "irreconcilable differences" had arisen between plaintiffs and attorney Fischer and that plaintiffs were in the process of retaining replacement counsel. (
On July 15, 2009, plaintiffs filed a pro se motion for enlargement of time to locate acceptable replacement counsel. (
On November 21, 2009, attorneys John J. Pawloski, Esq., and John Rooney, Esq. entered their appearances on behalf of plaintiffs. (
On November 23, 2009, attorney Fischer moved for leave to withdraw as plaintiffs' attorney. Other than plaintiffs' retaining new counsel, Mr. Fischer gave no reason for withdrawing from representing plaintiffs. (
Thereafter, a Rule 16 scheduling conference was set for February 11, 2010. (
Following other proceedings, on plaintiffs' unopposed motion, the court dismissed the action without prejudice on June 29, 2011. (
By letter dated April 7, 2010, after he withdrew from representing plaintiffs, Mr. Fischer notified defendant's counsel and plaintiffs' new attorneys that he had a lien against any settlement or judgment in this matter in the amount of $10,269.58. (Doc. 53-3.) He stated this amount was comprised of costs advanced by him and incurred by the McKinney law firm. (
On December 26, 2012, plaintiffs, now represented by William P. Hogan, Esq., commenced the instant action, based on the same incident, against defendants GEICO Insurance Company and James E. Haggard, under 28 U.S.C. § 1332. (Doc. 1.)
On June 27, 2014, the court was notified that the parties achieved a settlement through mediation. (Doc. 44.) Plaintiffs were ordered to file a stipulation for dismissal based on their settlement within 30 days. (Doc. 45.) The court granted plaintiffs two extensions of time, ultimately through September 30, 2014. (Docs. 47, 49.) On October 31, 2014, plaintiffs responded to an order to show cause issued by this court stating they were attempting to work out the above-referenced attorney's lien as well as other costs. (Doc. 51.)
On November 14, 2014, plaintiffs filed the instant motion requesting an order declaring the lien asserted by Mr. Fischer for him and the McKinney law firm be extinguished, because plaintiffs have already paid them $4,113.01 and because they abandoned plaintiffs without just cause during the previous case. (Doc. 53 at ¶¶ 8-11.) Plaintiffs have certified that they served a copy of their motion on counsel for defendant by the court's electronic filing system and on attorney Fischer and the McKinney law firm by U.S. Mail. (
On April 29, 2015, this court ordered the clerk of the court to serve plaintiffs' motion (doc. 53) on plaintiffs' former lawyers, William G. Fischer, Esq. and Rosemary B Rizk, Esq., at the law firm of McKinney and Associates, P.C. (Doc. 54.) The clerk of the court served both attorneys Fischer and Rizk via email on April 30, 2015, but was unable to confirm receipt. (
Title 28 U.S.C. § 1367 grants the court subject matter jurisdiction to decide the motion before it. "The district court is required to exercise supplemental jurisdiction over claims `that are so related to [the] claims in the action within such original jurisdiction that they form part of the same case or controversy' unless one of the enumerated circumstances giving the district court discretion to decline jurisdiction is present."
Supplemental jurisdiction, under 28 U.S.C. § 1367(a), exists to determine the validity of an attorney's lien due to its "high degree of relatedness" to the underlying claim.
There is no federal common law or statute providing for an attorney's lien. Therefore, the court must follow its forum state's law, i.e. Missouri.
Mo. Rev. Stat. 484.130.
This right to compensation, however, is limited by the client's freedom to change counsel.
Just cause for withdrawing is generally based upon some action of the client. The mere fact a case may be arduous and expensive is not just cause for a lawyer's withdrawal, absent indications a client hindered negotiations or made unreasonable demands.
The record before the court establishes that on June 8, 2009, attorney Rizk and the McKinney law firm withdrew from representing plaintiffs, and on November 23, 2009, attorney Fischer withdrew from representing them. Neither Ms. Rizk nor Mr. Fischer provided the court a reason for withdrawing other than plaintiffs retained new counsel. No statement by Mr. Fischer or Ms. Rizk specified what any differences were between them and the plaintiffs which would justify their leaving the case. (Docs. 53-7, 53-8, 53-9.)
Plaintiffs have provided credit card statements and a receipt from the McKinney law firm regarding payments the plaintiffs made prior to Mr. Fischer and Ms. Rizk leaving the case. (Docs. 53-4, 53-5, 53-6.) Plaintiffs have paid Mr. Fischer and the McKinney law firm $4,113.01 to date. (Docs. 53-4, 53-5, 53-6.) The two itemized bills from Mr. Fischer and the McKinney law firm total $10,269.58. (Doc. 53-3.) These bills show one payment made by plaintiffs on May 12, 2009 in the amount of $349.20. (Doc. 53-3 at 4.)
The court finds and concludes that the McKinney law firm and Mr. Fischer abandoned plaintiffs before the conclusion of their first lawsuit in 2009. No justifiable reason for this abandonment has been established in response to the motion. Therefore, the lien asserted by Mr. Fischer and the McKinney law firm against plaintiffs is invalid and they are not entitled to any of the settlement proceeds of this judicial litigation, either in Case No. 4:09 CV 682 DDN or Case No. 4:12 CV 2378 DDN.
Therefore,